tv Your Money CNN August 10, 2013 2:00pm-2:30pm EDT
up prices in the city. "your $$$$$" starts right now with that. >> so you heard that newspapers are dying. so why are billionaires buying? i'm john berman in for christine romans and this is "your $$$$$." so remember these? this is a newspaper. maybe you've never flipped through one. maybe your kids have never seen them but newspaper readership is falling. print ad dollars drying up and digital ads can't fill the hole fast enough. for every $15 newspapers lose in print revenue, they gain just $1 in online revenue. the business model clearly struggling and price tags flu plummeting so enter the billionaire buyer. 70 million bucks is how much john henry paid for "the boston
globe." $334 million is how much warren buffett spent on 28 daily newspapers according to the company's 2012 an all report. buffett has bought more papers this year and then there's the amazon founder shelling out $250 million for "the washington post." 1% of his personal fortune. as our jim accosta reports, billionaires have gone shopping in america's newsrooms. >> watergate brought down a president. >> have to get something on paper. >> but it made a newspaper. a triumph not just for reporters, bob woodward and carl bernstein but also for the family that owned "the washington post" lead by it's publisher kathryn graham now the legacy in the future of one of the most important newspapers rest in the hands of one billionaire, amazon found jeff
b bezos. gives new meaning to the term -- >> just follow the money. >> the "post" now follows other major newspapers. "the wall street journal" bought by murdoch and "the boston globe." >> i think what people are forgetting when we're talking about billionaires taking over the media, that's not exactly new. >> william randolph everyoherst how wealth -- >> i expect to lose a million dollars next year. you know, at the rate of a million dollars a year i'll have to close this place in 60 years.
>> something bezos has in common. remaking the selling the news is next. >> bezos can spend an enormous amount of money on "the washington post" without really taking too much of a dent in his own private fortune so he has the leeway to make major experiments. >> everybody knows that newspapers have to change. >> donald graham insists the commitment to journalism won't change. >> we will become a place that does its traditional job and maintains its traditional values but tries things and i hope a lot of them will succeed. >> a sentiment echoed by bezos to employees saying the values of "the post" do not need changing. the duty will be to readers and not to private interest of owners. we'll continue to follow the truth wherever it leads. >> most newspapers today are
terribly undernourished in terms of funding. there's an unwillingness to invest in investigative reporters or foreign bureaus have been closed down and they need to be reopened and a private owner with the kind of wealth that jeff bezos has can make a difference. >> david gergen came to know graham and ben bradley says bezos can afford to make mistakes but the stakes are still high. >> had it not been for ben and for kay, there would have been no woodward and bernstein and maybe the watergate story would have turned out very differently. who knows for sure. >> after the downfall of a president, it's just not washington without "the post." "the washington post" newspaper will no longer be a publicly traded company. it is now a privately held firm controlled by bezos. "post" management will remain in place but for how long depends
on jeff bezos. >> billionaires buying up newspapers. should we be worried? should we be optimistic? richard qwest is the host of "qwest means business" and he does mean business. let me start with you. you wrote a great piece talking about why you are so optimistic that jeff bezos is buying "the washington post." you think it's a terrific match. other people are not so optimistic. one critic wrote great journalism has been hijacked by the powerful to spread their personal ideology. explain to me your case. why is this a match made in heaven? >> as you have just seen great powers hijacking newspapers or owning them and pushing their own agenda is nothing new. the people i have spoken to at the "post" say the paper needs a technological revolution and has to make the leap into the digital age. it's been behind the curve. their business model is broken. if there's a guy out there that
can transform digital businesses, it's jeff bezos. people speak about him next to steve jobs as the most transformational business leader of our time. if he can take this paper and we know this guy loves long form content, right, the kindle was ahead of apple and the ipad in terms of getting people excited about reading in the digital format. if he can transform this paper, it's not just great for the "post" but the news business in general. >> old school. give me that. >> love it. get fingers dirty. >> the smell of news print. we are from that generation. you know, just revels in the idea of delving into the papers and what we hope is that somehow they will unlock the potential for the digital revolution and marry it with the traditional. murdoch has not managed to do
it. clearly. all he's done is split his company old and new. >> rupert murdoch owns "the wall street journal" among other things. >> he's trying to unlock that. the visionary -- he loves newspapers. he loves the industry. >> too much. that's why he hasn't unlocked it. >> absolutely. and also there's a sort of an old school nature to it. with bezos, the hope is that he will somehow not put a rocket up it but he will unlock the potential. >> let me talk about this. jeff bezos, john henry, warren buffett, they are good businessmen. if they are such bad deals, why do good businessmen want them so badly. >> some is self-interest in some cases. vanity plays in others. bezos is other. warren buffett loves newspapers. he's not looking to change the newspaper business. ditto for john henry.
jeff bezos wants to experiment. he wants to shift this medium and help it into the new age. >> and then you have this. >> i'm going to have post-traumatic stress. i was at "newsweek" for a decade. >> this went under the hammer for next to nothing. having no longer been in print, it's online and hardly there at all. they have to deny they are up for sale. >> you are holding "the new york times." they had to announce they're not for sale. >> this is how these papers are changing. just this week i subscribed to the home edition of "the new york times" because i moved to new york. i did it at 7:00 in the evening on wednesday. 7:00 in the evening on wednesday. on thursday morning at 6:00 a.m., it was outside the front gate. >> i am happy for you that you have this time to spend with your newspaper.
thank you so much for being with us. you get to leave with these special parting gifts. >> have you seen this interesting article. >> coming up, mark zuckerberg has mostly shied away from politics until now. >> this is something that we believe is really important for the future of our country and for us to do what's right. >> why he and other titans of technology are pushing for immigration reform. that's coming up next. [ male announcer ] wouldn't it be great if all devices had backup power? the chevrolet volt does. it's ingeniously designed to seamlessly switch from electricity to gas to extend your driving range. no wonder volt is america's best-selling plug-in. that's american ingenuity to find new roads. right now, get a 2013 chevrolet volt for around $269 per month. lecoca-cola is partneringg. with nashville parent and charlotte parent magazines, along with
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hd facebook, google, microsoft. on immigration reform they stand united whether it's mark zuckerberg or bill gates, they are technology visionaries who helped shape our president and now pushing for immigration overhaul that could shape the future. this week zuckerberg spoke publicly about immigration reform for the first time. >> the students who no matter where they were born coming into this country are going to be tomorrow's entrepreneurs and the people creating jobs.
this is something that we believe is really important for the future of our country and for us to do what's right. >> he has a vested interest. technology companies say they have jobs and not enough skilled workers to fill them. they holler that u.s. universities educate some of the most educated students in the world and then send them home to their countries. it's something that bill gates has complained about on this show when speaking recently with christine romans. >> particularly stupid for the american government to require us to fully educate people with ph.d.s and ship them out of the count country. >> if we want to bring a person here to be educated, you should never then make them go away. there are some categories of jobs where you know other jobs are created around them. so forcing those back to asia doesn't make sense. >> the tech industry is making its case loudly.
the question is washington listening? dana bash is cnn's chief congressional correspondent, a reporter in the worldwide reporting hall of fame. dana, the senate passed a comprehensive immigration reform bill. it stalled in the house right now. here's what senator chuck schumer said on cnn's "new day." >> we would much prefer a big comprehensive bill but any way that the house can get there is okay by us. i actually am optimistic that we'll get this done. >> he's now talking about the possibility of supporting a piecemeal approach. it seemed like a marker of sorts. how do you see this shaking out? >> it was a marker. certainly that's the way it's being perceived by house republican sources that i have spoken to about that. the only catch is that he's putting out an olive branch saying if republicans want to pass immigration in the process of splitting it up in smaller bills, that's fine. he's moving away from his idea of comprehensive immigration
reform. here's the but. what they are not going to go for in the senate, these people who support comprehensive reform, is saying we'll pass border security bill now and in a year or two years we'll get to the issue of legal status or citizenship. that is something they will not go for. there's an important gray area here. the fact he put that out is certainly telling. i will tell you very quickly. the whole fear going into this month-long recess where we are right now is among supporters of immigration reform was that republicans in the house would get blasted by conservative constituents. the base. don't you dare touch this. what we have seen so far is actually the opposite. we've seen republican leaders come out and be much more open to the idea even of legal status. we're talking about the house majority whip and even the house judiciary chairman. that has been surprising and maybe a sign that this whole idea is not dead after all which a lot of people thought. >> dana bash, thank you so much.
you have anti-virus software on your computer but what about your car? automakers adding new features to your car but where you see that, hackers are finding ways to get to your car. >> very eye opening. i spent time at a hackers convention in las vegas. it's as crazy as it sounds. they were showing us how to hack all types of devices. when they decided to show us how
to hack a car, that's when it got a little bit crazy. check it out. >> there's lots of computers in your car and they all have to talk to each other. there might be a computer in charge of your brakes or steering or engine. and what we did was we figured out how they talked to each other and then we pretended we were various pieces of the car and told other pieces to do things. >> can you just show me some examples of how you guys did that. >> sure. so here is one where we make the brakes not work. this only works if you're driving rather slow like five or ten miles an hour or something. i tell the car i'm a mechanic and i want to bleed the brakes. during that process, you can't actually use them and so in the video chris goes to pull into a parking spot. not working. we drive over the curb into the dpras and he never would have stopped if i didn't tell him. >> take us through some more examples. >> this is one that was most terrifying for me because i was driving i guess. i'm driving along here.
40 miles an hour or something. chris can make the steering wheel yank out of my hand and turn to the left. we had to basically trick the car. it was designed not to allow you to turn the steering wheel at speed only allowed you to steer the wheel when parking. >> you had fun with this. how can this be used maliciously. gentlemen had fun but it's a serious issue. we want to get issues out there now and get them fixed before it's a problem. >> in a statement from toyota, the company said it's important to note that a recently publicized demonstration required a physical presence inside the vehicle partial disassembly of the instrument panel and a hard wire connection. all of this would be obvious to the driver. our focus and that of the entire auto industry is to prevent hacking into a vehicle's biwire control system from a remote or wireless device outside of the vehicle. ford did not immediately respond to cnn's request for comment.
>> what responsibility to companies have to take a step back and talk to folks like you about security. >> we love these gadgets. we think they need to make sure they do it in a secure way. >> you see these guys are having fun with it. the steering wheel jerki ining of control and these guys are laughing but it's a serious issue. cars are getting smarter. this will become a problem and major companies need to take notice. >> i can't believe the steering wheel jerking out of that guy's hands. thank you for scaring the heck out of me every time i step into a car. so much for the sale adage that all real estate is local. >> location, location, location. >> are chinese home buyers half a world away driving up prices in your city? that's next. ?hña @8@x
atlanta and los angeles. and as christine romans reports, you may be competing with buyers you wouldn't expect at the next open house. >> reporter: it's a saturday afternoon in this hong kong hotel and chinese investors are enjoying a catered lunch while bidding on properties half a world away. >> location, location, location. >> reporter: spending hundreds of thousands of dollars on properties they may never set foot in. the chinese are second only to the canadians when it comes to buying real estate in the united states. when they buy, they buy big. spending on average $425,000 per property. and most of the time they pay all cash, all cash, preferring big cities and their suburbs. >> we have friends and folks who live there so it's keeping up with the jones. >> reporter: a u.s. home is place to stay on vacation and a
deal. real estate prices in china are sky high so citizens are cutting checks without stepping foot inside a property on the other side of the planet. this one is a normal event. this exposition hosted by a group. >> one way or another the prices will go up. >> in the united states anyone with cash can buy real estate regardless of citizenship. a very simple contract is all it takes. something new for chinese citizens. >> there is a security to owning property in the u.s. that doesn't exist in china. only recently that the chinese government brokered property regularly. that means people who have means are nervous about their ability to hang onto those means if they invest in china. >> 53% of reported purchases by chinese buyers were in california. why? because it's closer. as a result, the market has changed. seasoned l.a. broker sally
forrester jones has had to change with it. >> i spent time in china just meeting a lot of the potential chinese buyers to get an understanding of what types of property they like. they are buying anywhere from the lower end in los angeles marketplace which is somewhere around a million to the high end 20 million. >> andrew chen has his eyes on a few homes across the u.s. >> a lot of information that is provided. very informative. >> reporter: he's not ready to buy just yet. when he is, china's restrictions on transferring money out of the country will be relatively easy to navigate. christine romans, cnn, new york. and coming up on "your $$$$$" tomorrow at 3:00 p.m. eastern, putting the bust in blockbuster. movies like "the lone ranger" and ripd falling tens of millions of dollars short in their box office debut. why a